[5 November 2017]

On December 31st, 2017, the DTPS and Research ICT Africa presented to the Telecommunications and Postal Services Portfolio Committee on the cost of communication, including data pricing trends.

DTPS presentation on Cost to Communicate 31 October 2017

Research ICT Africa presentation on Cost to Communicate 31 October 2017

[27 September 2016]

Below are links to submissions and presentations made:

• Alliance for Affordable Internet
• Alternatives for Affordable Communications in rural South Africa Innovative regulatory responses to increase affordable rural access
• Cell C
• CSIR
• DTPS
• ISPA – presentation
• ISPA – submission
• ICASA
• MTN
• Neotel – presentation
• Neotel submission
• Research ICT Africa
• Right 2 Know – Alternatives to Privatisation
• Right 2 Know – Lived Costs of Communication
• Right 2 Know – submission
• Telkom
• Vodacom
• WAPA

[27 September 2016]

To understand the current debate surrounding mobile data costs in South Africa, it’s helpful to consider a recent update on the state of the prepaid mobile market, provided by Research ICT Africa

• Vodacom, MTN and Cell C are competing more and more on customised products for all subscribers instead of strict service pricing.

• Telkom fails to exert pressure on other operators despite undercutting competitor’s voice tariffs and monthly data prices.

• Cell C’s strategy to champion best-value products, cheapest voice and SMS products, and subsidising an exclusive zero-rating strategy with a global social networking platform makes it the leader of the prepaid pack.

• Customised products from service providers may result in reduced cost of communication but this requires high levels of consumer awareness to check the terms and conditions of such services which may have time or product limitations.

[18 September 2016]

The programme for the hearings can be found here:

Final Programme on cost to communicate

[8 September 2016]

The Parliamentary Portfolio Committee on Telecommunications and Postal Services is revisiting the issue of communication costs in South Africa. However, there’s limited time to participate as written submissions are due by September 13th 12h00 with hearings set for September 20th and 21st.

Advert for public hearings on cost to communicate

[12 February 2014]

After public hearings, the Portfolio Committee on Communications issued its final report on the affordability of communication services in South Africa on February 4th, 2014.

Report of PPCC Public Hearings on Cost to Communicate

Consolidated Public Hearings Submissions Matrix

[15 July 2013]

The Parliamentary Portfolio Committee on Communications is holding public hearings on the high cost of communication in South Africa. These hearings will take place in Gauteng from July 22nd to 26th, 2013.

Limited Opportunity for Public Input

While this is a positive step towards addressing affordability concerns, the Committee is criticized for providing very short notice. This short notice makes it difficult for the public and industry to participate effectively.

Hearing Details

• Focus: General cost of communication in South Africa
• Dates: July 22-26, 2013
• Location: Gauteng (venue to be announced)

Who Can Participate?

• Written submissions are welcome until July 18th, 2013.
• Oral presentations can also be requested.
• All stakeholders in the communication sector are encouraged to participate, including:
  • Small businesses (SMMEs)
  • Academia
  • Non-Governmental Organizations (NGOs)
  • Political Parties

Contact Information

• Submit inquiries and written submissions to Committee Secretary, Mr. Thembinkosi Ngoma:
  • Email: tngoma@parliament.gov.za
  • Phone: 0214033733 / 0837098407

Further information is set out in an accompanying notice:

The Parliamentary Committee on Communications wants to hear from you! They’re holding public hearings to investigate the high cost of communication in South Africa.

These committees are like Parliament’s work crews. They make sure the government is doing its job, review laws, and connect with the public. Public hearings are a key part of this, allowing people like you to share your experiences and ideas.

Details about the hearings (dates, location) will be announced soon. In the meantime, you can still contribute by submitting your thoughts in writing or requesting to speak at the hearings.

This is your chance to help make communication more affordable! Keep an eye out for further updates and ways to get involved.

Introduction

The Parliamentary Committee on Communications is holding a series of public hearings across South Africa to discuss the high cost of communication. Here’s a breakdown of the schedule:

First Leg: Gauteng Province (July 23rd-26th, 2013)

Second Leg: Eastern Cape Province (July 29th-30th, 2013)

Third Leg: KwaZulu-Natal Province (July 31st-August 2nd, 2013)

Following Up on Previous Discussions:

This is the second round of hearings on communication costs. The first round, held in November 2012, focused on government policymakers (Department of Communications), regulators (ICASA), and major network operators (Cell C, Vodacom, 8ta, MTN).

Expanding the Conversation:

This second phase aims to gather broader input by including all players in the communication sector, such as:

• Small and medium businesses (SMMEs)

Background

The Chairperson of the Parliamentary Committee on Communications addressed the Department’s budget vote, noting:

“I am fully aware that some of our operators are disputing the fact that our communications cost are too high. To this end, the Committee will be embarking on Public Hearings on the impact of the call termination rate before end of June 2012. Furthermore these hearings will not be limited to the call termination rate but will in generally include the cost to communicate in the entire communication sector”. [Hon Eric Kholwane, Debate on Communications Budget, 8 May 2012].

“Broadband Internet is improving the lives of people in developing nations and facilitates access to economic opportunities and social welfare that were previously inaccessible to the poor (ITU, 2012c). For example, mobile broadband has been driving financial inclusion through mobile banking and mobile money in Africa, and it supports new ways of delivering healthcare in many developing nations (ITU, 2012c)

The South African government views widespread broadband access as crucial for economic growth. Their ambitious plan aims for 100% broadband penetration by 2020.

Economic Benefits of Broadband

Broadband is seen as a key infrastructure investment. It’s believed to boost business productivity, encourage innovation, and ultimately improve the lives of all citizens by enabling participation in the digital economy.

High Communication Costs: A Bottleneck

However, a major obstacle to achieving these goals is the high cost of communication in South Africa. Many believe this is due to a lack of competition in the market.

Promoting Competition for Lower Prices

The government sees fostering competition as a solution. They believe lowering barriers to entry will attract new investors and drive down prices. This approach prioritizes market forces over regulations aimed at preventing monopolies from exploiting consumers.

Telecom Sector: The Backbone of a Modern Economy

A robust telecommunications sector with affordable communication is seen as essential for national competitiveness. It’s considered the nervous system of the economy, connecting users to each other and vital information.

Cost Reduction: A Top Priority

Therefore, reducing communication costs is a top priority for both businesses and society. While infrastructure quality and connection speed are important, affordability remains a major concern in South Africa. ICASA, the industry regulator, acknowledges that cost-based pricing might be a solution for lowering call costs, but the effectiveness needs verification.

ICASA’s Cost to Communicate Program

Last month, ICASA unveiled a program aimed at tackling high communication costs. This program includes studying the broadband value chain, reviewing call termination rates, finalizing local-loop unbundling regulations, collecting data on ICT indicators, and establishing wholesale transmission rates.

The Challenge of High Mobile Tariffs

Despite reductions in mobile termination rates, South Africa still faces high communication costs. ICASA data shows the country ranks a concerning 117th out of 140 globally in terms of mobile tariffs. In Africa, South Africa ranks 30th out of 34, with an average call cost per minute of $0.51, ahead of only a few countries. Even within the Southern African Development Community, South Africa ranks a disappointing 9th.

The Need for Action

These statistics highlight the need for effective measures to address high communication costs in South Africa. ICASA’s program is a step in the right direction, but its success hinges on verifiable solutions and effective implementation.

Key Statistics

Despite some progress in making broadband services more affordable, according to the International Telecommunication Union (ITU), high prices remain a significant barrier across Africa [1]. This often indicates a lack of competition in the market [2].

The Global Divide

The ITU reports that in 2011, fixed broadband access cost less than 2% of the average monthly income in 49 countries, mostly developed nations. Conversely, in 18 of the least developed countries, broadband was more expensive than the average monthly income [ITU, 2012c].

South Africa: Progress with a Caveat

South Africa has seen a notable increase in internet users (18.7% between 2007/08 and 2011/12) [RIA, 2011/12]. However, this progress is hampered by the high cost of communication services.

Addressing the Affordability Gap

The committee recognizes the efforts of ICASA (Independent Communications Authority of South Africa) to lower interconnection rates. However, compared to other developing nations, communication costs in South Africa remain high. This is despite South Africa having the highest internet penetration rate (33.7% of the population aged 15+) among the investigated countries [RIA, 2011/12].

Public Hearings: A Path Forward

Acknowledging the concerns about communication costs, the committee will hold public hearings. These hearings will explore the impact of high costs on the general public and small businesses (SMMEs). Additionally, they aim to comprehensively evaluate the entire communication cost value chain. This will inform necessary legislative, policy, and regulatory interventions to make communication services more affordable.